kelley you may recall is the same married mom of three, who set off the initial fbi investigation into paula broadwell. now e-mailses that multiple law enforcements tell abc were traced back to biographer paula broadwell. in yet another twist in this case, the fbi conducted a consensual search of broadwell's home last night. meanwhile, an internal fbi inquiry has been launched into the agent who started the investigation and who tipped off republican members of congress about it, a senior government official telling nbc news, the agent sent shirtless photos to jill kelley prior to the investigation. now, as the inquiries into allen and petraeus move forward, congress is reconvening on capitol hill about the original fbi investigation.

>> the elements on in some ways of a hollywood movie, once this investigation, whenever david petraeus's name came up, they had an only giggs to tell the president. >> the defense secretary leon panetta telling reporters that congressional intelligence leaders should have been notified and much sooner. >> i believe that there's a responsibility to make sure that the intelligence committees are informed of issues that could affect, you know, the security of those intelligence operations. >> joining me now is constantly unfolding story, we have two nbc correspondents, kristen welker and michael isikoff michael? >> what we learned last night,

general allen, the u.s. commander in afghanistan has been implicated in this because of 20,000 to 30,000 documents exchanged with jill kelley. the tampa associatite who triggered this investigation when she complained about those menacing e-mails that she had been getting from an anonymous sourt who turned out to be paula broadwell, the woman who was having the affair with cia director david petraeus. what we were being told that the original e-mails, these anonymous e-mails from broadwell to kelley did not initially specifically reference petraeus, it talked about her, kelley's relationship with other generals at the u.s. central command. and southern command, suggesting that she was having an inappropriate relationship with them, that she ought to watch it and cut it out, as described to

me from a source. we know that general allen who's now the center of this was the deputy command at central command until 2010. so, by implication, we can assume from the beginning, at least when paula broadwell began sending these e-mails she knew something about the relationship between jill kelley and general allen, whatever that relationship was, and that that was the source -- that that was the trigger initially for the e-mails that led kelley to complain to the fbi. it does suggest at a minimum, that the fbi was aware from the early days of this investigation, not just about the broadwell relationship with petraeus, that had to be

unravelled and uncovered later. but also about the kelley relationship with general allen. >> kelley did respond to the petraeus situation in a very small statement about requesting privacy for her family. have they said anything in regard to general allen? >> thus far, no statement from the jill kelley camp about the allen relationship. no. >> also, let's check in now with kristen welker, kristen fill us in what the white house reaction has been, at all, we understand that general allen is in washington, ahead of what was going to be a confirmation hearing, where does this stand right now. >> that confirmation process has been put on hold for general john allen. they're speeding up the

confirmation process for his replacement in afghanistan. we're awaiting of course for the white house to respond on camera. i can tell you that the briefing will likely focus on exclusively on this issue the fallout from general petraeus and now general john allen. white house released this statement in the early hours of this morning, we havegraphic of it. it says, quote at the question of the secretary of defense, the president has put on hold his nomination of general allen as saceur pending the investigation of john allen. that's coming from tommy vietor. this is coming the days after president obama won re-election. certainly not how the administration envisioned the

first few days of the new term. they are certainly stunned by some of these developments and trying to stay focused on the fiscal cliff, that's something that's pending and potentially could impact all americans, however, this is something they'll have to deal with, president obama is set to hold a news conference this week. he'll get a lot of questions about this. about the timing. about how this entire process has been handled. >> the president is supposed to meet with labor leaders today, obviously the allen and petraeus is taking up a lot of oxygen in washington, d.c., today. but this is an important meeting about how to approach the fiscal cliff to come to a compromise? >> right, there are a couple of different motmotivations for th meetings. one, to get a sense of the different interests coming from business leaders. also, i think president obama would like to get some of these

folks on his side to come up with a balanced approach to deficit reduction. lee saunders will be here afsme. so, he'll be trying to get their prospectives on all of this. >> kristen welker at the white house for us this morning. thank you. tuesday political power panel. it's great to have you all here. i know that the washington post has been covering the story, the e-ma e-mail smear story with general allen. as far as we know, no everyday of security leaks. lots of big bombastic headlines,

this today on the "daily news." in the line of booty. showing jill kelley, this woman in tampa. what are you hearing about the investigation as it moves forward? this is say lashs. we haven't heard anything that's threatening to national security. >> it's reality tv meets the cia meets the military. this is a story that i think will continue to unfold over the next couple of days. it has as you said, garnered such interest. it's like we were talking a about the election and the fiscal cliff, and now we have this situation where this high-level cia official is acting in a way that's almost like a smitten teenager trading e-mails with a woman that's not his wife. there hasn't been any security breech. but i think folks on the hill are certainly interested in if there are any connections to

libya for instance, the benghazi incident. you'll hear from these people. there are going to be ongoing questions about this and certainly increased interest from the public who look at this and see in their leader someone -- people who have acted in common ways, i think, so far unexpected given the reputation of some of these men. >> a big week as they get back after the election, this is not something they want to have to deal with front and center, the white house has managed to stay largely out of the fray on this. what does the president immedianeed to do maintain that? >>messy. the president has meeting with labor leaders. you know, you have this thing hanging over washington.

and you know, as everyone has said, it's salacious, there seems to be a new angle to it every day. i'm not quite sure what the administration can do, other than keep moving forward trying to deal with the fiscal cliff that we're discussing now and clearly, you know, it seems a lot of people were kept out of the loop many terms of this fbi investigation and congress, you know, is upset about that they didn't learn until it was a little bit late. it's a really tough position for the administration to be in and i really think that the president has to continue with his schedule as it is. and let kind of this investigation and this story play out. >> susan, as a republican strategist, are you surprised that this hasn't become a partisan issue? we're still in the emerging stage of the details.

>> just going back, it does appear that a couple of hi high-level republicans knew about this going back to the summer. we have to give credit where credit is due. but, this is problematic for the administration. this is the second time and granted the subject matter isn't necessarily national security, but, it's when did the white house know it? what did they know? they seem to be tripping over this yet again. congressional leaders are looking for, how is it possible that the fbi knew this and the white house didn't? how did things roll out? if they don't come up with clear-cut explanations, that's going to be problematic. >> in the second four years, there are big changes air head of secretary of state and secretary of defense.

there are a lot of very important and definitive choices to be made that the president wants to start out his second term in a logical but solid way, is all of this, all of these fires going on at at the same time just a big distraction to the hard work that needs to be done. >> i think that the president has demonstrated over the last four years that he can juggle a bunch of different balls. to susan's point, as far as when did the administration know it? one of the reasons it may not become a real -- blow up into a partisan fight, it may still, because general petraeus is popular with republicans. now, we know that house republicans knew about it before the administration did. the key the thing is, the

president being out there leading these meetings on the fiscal cliff, talking about jobs. what's going on with this petraeus/allen scandal is going to unfold on tv. people can tune into this and get as much out of the soap opera young and the restless. the administration, the president is moving forward with his second-term agenda. >> we're more days of the lives fans around here. >> like sands through the hour. our political power panel. thanks to all of you. i appreciate it. is congress being distracted by the petraeus affair when it should focused on the fiscal cliff? will the petraeus scandal reflect poorly on our military

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washington is certainly abuzz this morning with the latest developments of the scandal that led to the resignation of cia director general david petraeus. stolen the spotlight on what would have been at the op of the agenda today, avoiding the so-called fiscal cliff, automatic tax increases and budget cuts that kick in january 1st. efforts to avert that crisis are moving into high gear. congress returns from a seven-week hiatus. tomorrow, the president will host business leaders. then on friday, he'll host congressional leaders from both parties and the fiscal cliff being topic number one. joining me now live is chris

vanhollen. sir, great to have you here. we'll talk about the fiscal cliff in a second. but i want to get your reaction on this unfolding scandal that led to the resignation of general petraeus. all kinds of questions about whether the fbi has acted properly in this and why the white house wasn't informed earlier? what's the biggest question that you want answered at this point? >> well, thomas, as you say the facts keep coming in from different directions. this story gets stranger and stranger. by the moment. look, i just want to get the bottom of the facts to extent they have an impact on national security or intelligence breaches. that's the important aspect of the story from the public policy perspective. the important thing is, follow

these leads diligently. get the facts and then decide what we need to do. >> so, when we talk about this story, i have to be honest, because, i think it buys you guys a lot of cover getting back into session right now, to talk about the big issues of the fiscal cliff and not have a lot of cameras and not have everyone in your face asking about you. president obama and congressional leaders say they're willing to compromise. the president still insisting letting the bush tax cuts expire. meanwhile, house speaker john boehner remaining opposed to raising these tax cuts. do you think because of a lot of attention and oxygen being taken up in washington, d.c. with what's taking place with petraeus and allen there will be a way for like minds to come to a come prose mize. >> you're absolutely right, thomas. the media coverage is on these

emerging facts on petraeus and other cases. the answer is, i think so, i hope so. we're not there yet. we have six weeks to work this out. two parts of the fiscal cliff, are across the board cuts. we'll be able to come one an alternative way to reduce the deficit in a smarter way to avoid that. the tax piece is a lot tougher and a lot bigger, the president as you know, we should immediately act, we the congress, to extend tax relief for 98% of the american people. in fact, taxpayers would get tax relief on first 250,000 in income. if we want to address the long-term deficit, it has to do with the cliff.

speaker boehner needs to come forward and put that on the table as the president has done. >> when the president meets with labor leaders, they're expected to pressure him to reject the cuts in medicare he offered to make the debt negotiations last summer. the reducing social security payme payments, are social security and medicare, are they back on the table this times around. >> with respect to medicare, we can achieve additional savings in medicare. we began to do that under the affordable care act. misinformation coming out of the republicans on the real savings that we achieved with medicare. we can build on the model of changing incentives.

but, we'll continue to oppose the idea of simply along rising costs on to seniors in forms of voucher programs. with respect to social security, we should look at that but not as part as deficit reduction. that's been dealt with on its own merits. but, i guess the short answer to your question is, all of these issues need to be discussed. we need to remember unless we ask higher-income individuals to contribute to reducing the deficit. everyone else gets much harder. seniors on medicare get harder. our investment in science and research gets hurt and that hurts our overall economic competitive. all of these issues, i think, are to be discussed. two pieces, one, we got to resolve the immediate fiscal

cliff. then, we have to lay the groundwork for a structured conversation to deal with the bigger issues as well as tax reform over the next six months to a year. >> thank you, sir. as we mentioned president obama will meet with labor leaders at the white house at the half-hour mark to talk about the fiscal cliff. what does the president plan to offer his supporters? that's coming up. plus, why nearly tween girl in america was here at rockefeller center this morning and screaming at top of their lungs.

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welcome back, everybody. as we speak, president obama is meeting with labor leaders as part of a campaign to gather outside support for his plan to tackle the deficit. showing you live pictures from the white house where the president greeted leaders a

short time ago. the first of three meetings this week about the looming fiscal cliff. joining me now from washington d.c. is former 2012 obama travel secretary is st. i got to get your reaction to the president's re-election team. and the fact that out on the campaign trail, no one heard about this petraeus stuff? none of you guys were talking about this in social circles to think that something big was coming like that. >> no one knew. no one still knows. there's an ongoing investigation. obviously, the department of defense has an ongoing investigation looking into general allen's case. general petraeus stepped down on

his own accord. >> jen, as we talk about what is now part of the public discussion, the petraeus situation now looking at this investigation into general allen, and big shakeups that were expected to come anyway within the president's cabinet when we talk about at state, at defense and things like that, do you have a feeling which way the president is going to go first in terms of these cabinet slots to fill? >> i don't think anyone knows that except for the president. i world for him for six years. i know that he'll take advice from many different sources. a lot of qualified public servants and people to consider for any of the openings there will be. we know that secretary panetta said if or when he'll step down. he'll remain in that position for now. secretary of state said she would. secretary geithner said that

he'll be there through the fiscal cliff. >> the president has the number of meetings, as i mentioned this week, starting today, labor leaders, then economic and congressional leaders, later this week, what does he feel his mandates are from the voters and what will the agenda look like in a second term? some people assume, because the fact that there's not a re-election campaign to worry about, that the president is really going to attack things with a vigor? >> well, i think there's no question he's excited about a second term and the agenda he has for his second term. the fiscal cliff is the first hurdle to get through. what he learned not only through the campaign but the time before that, the american people want more action and less talk. you know, i expect he'll take this case to the american people. the fiscal cliff and other items on his agenda moving guard. you know, this coalition of

people who have reelected him, who supported him and believed in him, they're part of the conversation. >> one thing our first read team pointed out, one of the failures of the 2012 debt negotiations was the lack of the outside game, how important is it to bring in business leaders to get the support that the president needs to talk about not just inside an ek cochamber what the economy needs moving forward? >> it's essential. what learned from 2011, debt negotiations from 2011, nobody wants to see hours of negotiations around a table where nothing is moving forward. there are solutions and proposals that the president has put out there. he's meeting with business leaders, labor leaders, civic leaders. he'll take his case to the american people. and he knows that this coalition of people who elected him and have serious, you know, beliefs

that we need to resolve this are part of the conversation and i think he's learned that lesson and you'll see that in the fiscal cliff but also in his agenda moving quickly. >> former 2012 traveling campaign secretary. a long title. what's the new title for jen in. >> i'm going on vacation with my husband for two weeks. i'm sleeping. i'm headed back to the private sector. i'll always be a big supporter of the president. i'm just excited to see what happens in his second term. >> all right, jen, great to see you. the one-two punch of the fiscal cliff, tax hikes and spending cuts are set to take effect unless leaders can come up with a plan by the end of the year to avert that.

let's dig in now, with washington post columnist. you're not calling this a fiscal cliff but the austerity crisis, why do you think more european name-calling here is going to get people's attention? >> i love european name-calling. i don't anybody understands what fiscal cliff means. the fiscal part of it, tend to associate fiscal problems with deficit. this will be a problem caused by too much deficit reduction too quickly. you got these debates is it a cliff, a curve? a slope? i don't think we know how quickly problems begin. what we do know it's a sufficient contraption, in 2013, within two months, if we don't solve it, we'll need to raise

the debt ceiling, tip the country into a recession and the financial markets into chaos. with some confidence and certainty it's a crisis. austerity, we're worried about austerity too quickly. i'm trying as a journalist to give this thing a name of what's going to happen here. >> let's talk about what you written and the election in 2016 as it relates to austerity crisis. you write, there are a number of powerful republicans who would see their futures diamond by a grand bargain that credibly puts deficits on a downward trajectory. so, are you saying people like congressman paul ryan who has been a deficit hawk and campaigned on being a deficit hawk on the romney/ryan taicket do you think he would derail a

grand bargain to have a platform to run on? >> what i would say, you have a lot of folks in the gop, at the presidential 2016 level, their political identity has been formed around their argument that we need to bring this deficit down quickly. if we get a deficit grand bargain into place, note that paul ryan voted against simpson/bowsimpson simpson/bowles, if we get that in place, suddenly that argument is off the table. so, it's not going to be all that easy for some of these people to say, okay, we're finished here. i think it's a mistake to accuse politicians of having too much cynicism. lot of people painted themselves into a corner, an identity of being very, very pure

conservative deficit hawks. it's going to be hard for them to let that go. >> speaker boehner said over the weekend, he doesn't want to box himself in, do you feel confident that he's going to come to the table and he'll be workable on a situation? >> i rarely feel confident about congress. speaker boehner has shown that he wants to cooperate. the republicans lost the election in 2012. so, he's got his own legacy incentives to make this happen. something people didn't notice boehner's speech a week ago, came before the new republicans came to d.c. where he was leading from behind, so to speak, doing outreach and very concerned about whether or not he can keep

his people together, now, he's been out front on this. folks in the white house are taking that as a big sign that he's taking a different approach. why some say mitt romney really lost and what the president supporters really want? then, will the petraeus scandal reflect poorly on the military as an institution? we want to know your thoughts on that. into their work, their name on the door, and their heart into their community. small business saturday is a day to show our support. a day to shop at stores owned by our friends and neighbors. and do our part for the businesses that do so much for us. on november 24th,

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obama's presidency. >> the idea that we have to become more moderate to win election and the white establishment is now the minority. >> i think that the future of the party is quite bright. >> joining me is the spin room armstrong williams, conservative talk show host and syndicated columnist. armstrong, i want to start with you, laura said moving more moderate is false. they don't need to move to the center to win these national elections. the president's margins. 93% support among blacks. 71% lay tinos. 67% unmarried women. how can your party go on and know that the numbers aren't there to support it? >> obviously, some times it's hard for some people to find the wisdom in defeat and sometimes

in victory. obviously, i don't think that the recent election was the repudiation of republican ideas, but what the party looks like. single woman, american blacks, latinos, and more women, the republican party must understand if they don't want to disappear to irrelevance, they need to come up with a better brand. i was on this show, open phone lines sunday in new york, i was at the number of callers who were black, who said, please beg the republican party to give us an option. we felt that barack obama carried about the hurt in people. he more identified with the fact that not everyone is wealthy and live in a bubble. give us something to choose from. that was very encouraging for

me. it's a wake-up call, even on the issue of immigration. we have to balance that. >> armstrong, let me jump in here because politico talked about the gop being trapped inside this media cocoon. many young republicans, except it's not con find to geography but a self-selected media universe in which only their own views are are reinforced. is the republican party allowing itself to be mislead by a false narrative person tated by the right media? >> they're drowning in a sea of spin. several layers of denial going on all at once. one, they think -- in some ways it's 1950s when it comes to social and cultural issues and it's not.

they believed for years, their own spin, that barack obama was a some secret socialist, a musl muslim, mitt romney played fo footsie with donald trump, his number one birther. they kept saying that this guy isn't american. guess what, most americans don't believe that and you're left with the policy dimensions. the republican party has a problem much bigger than affirmative action could solve. it's not just who they are and what they look like. which is mostly angry, white guys, which armstrong being a exception. whether it's funding for head start, raising taxes on the rich to ensure that we can invest in insfrak structure, education,

they're out of sync with these same groups. it's not a surface issue, it's a deep, you know, sort of an infrastructure issue within the party. >> do you think four years is enough time to turn this around? >> give them a year. they'll learn. you know, how the democratics learned from the era of newt gingrich. we go these cycles. look at speaker boehner, he's showing that we need to show leadership. we have to work with the president. they have the message and they'll respond appropriately and you'll see. >> that's very optimistic. i think, i degree with armstrong, the next few weeks whether they got the message or not. we have this big issue coming up with all of these fiscal issues and boehner a year and a half ago, when this came up the last

time, he was basically whipped by the tea party wing of his party. so, the real question is, whether he's able to go back to that tea party link and say what armstrong just said, work with the president, some degree on compromise on taxes and raising revenues. i think it's an open question whether he can do that and whether he can succeed in doing that. >> gentlemen, thanks so much. i appreciate your time today. stick around. up next, i got actor and activist ally sheedy waiting in the wings. she'll be with me in a second.

welcome back. tens of thousands are still in the dark after hurricane sandy. power crews in new york and new jersey scrambling to get the last of the lights back on to over 22,000 customers. on a positive note after weeks of long lines at the pumps gas rationing ended in new jersey this morning, but that is still in place in new york city and

long island and thousands in the region remain homeless. a huge cross-section of the lgbt community in new york city after one of the biggest shelters was wiped out by the storm. here with me in the studio to talk about the rebuilding effort is ally sheedy. >> thank you. >> you have a big place in your heart for the ali fornay center, those that don't know about it, a shelter for homeless lgbt. >> it's a center that provides services for kids living on the street and don't have anywhere to go. those kids are waiting for shelter beds anyway before the storm. they didn't have anywhere to live. this is a place they could get services an it's gone. >> we're showing pictures right now because they're positioning of where their center is in new york was flooded out. >> right. >> and completely destroyed. they're not allowed to be back in there. what has this done to their work and the efforts because it didn't stop lgbt kids from coming to new york city during this time. >> no. >> homeless kids have still been

showing up in the city. >> right. a large community of kids, a lot of them are teenagers, who are living in the streets and living in the subways, kicked out of their homes, run aways that come to new york. the ali fornnay center was feeding 10,000 meals a year for these kids. showers, clothes, hiv testing, counseling, treatment. mental health services, career counseling, education counseling, mainly group support. it was a place for kids who are living wherever they can to come and have safety and have people to help them and give them some services to start to structure a life. >> that's the big thing for people that would think there are other homeless shelters but this one is equipped to help this disenfranchised youth sector. >> will there are no beds. most are on a waiting list. this is a center that would give them services, not just -- they can't go to a shelter and get the kind of help they actually

need to have. and this is a unique center, the only one like it in the entire nation and it is completely destroyed. so there's nowhere for them to go. and it's very hard for the center to keep track of where they are, especially the ones that need help and there's some that need medications and there's some that really need some mental health counseling. they've obviously been kicked out and nowhere to go and they're very young. it's the only place of its kind and it's not there anymore. >> and this has been a passion project for you. just this past weekend there was a great event here in new york to raise money, specifically for a sandy relief event for the ali fornnay center and raised a lot of money. if people want to learn more, they can go on to the website to donate and help rebuild. >> right. >> ally, great to have you here. >> thank you very much. >> this is a good passion project for you. >> thank you, be thank you for being here. that's going to wrap things up for me today. see you tomorrow at 11:00 eastern. "now" with alex wagner.

i will ask you now, alex, are you more of an ally sheedy breakfast club or saint elmo's fire? >> breakfast club. so is awesome. we're across from you, it's so awesome. within 20 feet of me. >> we win. >> you get to have people all the time. >> i have never had ally sheedy. >> i would love it. >> nice work, thomas. >> thanks, alex. >> great project, ally. >> i love nina turner, i'll come talk about her. >> that's right. >> we have a lot to talk about today. a cia director, a u.s. military commander, a social liaison, a writer and wait for it, a shirtless fbi agent. we will try to unravel the real-life tragic comedy that is the david petraeus sex scandal. president obama takes on the role of salesman in chief. panelists steve kornacki, jonathan capehart, michael eric dyson and ashley parker weigh in. new york magazine's benjamin

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